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2/26/2025

Telefónica España's transformation with Microsoft Azure: Enhancing network performance through big data and AI

Telefónica faced challenges in optimizing network performance and reliability due to the vast amounts of data generated daily by their modern mobile network. Monitoring and analyzing this data posed significant logistical challenges.

Microsoft Azure provided tools for data extraction, processing, storage, and analysis, enabling Telefónica España to harness big data, AI, and automation for network optimization and improved customer experience.

Telefónica España improved network performance and customer experience, achieved substantial savings in operating costs, and enhanced operational efficiency through automation and intelligent network optimization.

Telefonica Group Spain

Introduction

Telefónica, a global leader in telecommunication services, is committed to making the world more humane by promoting inclusive digitalization. Operating in 12 countries and reaching nearly 400 million accesses, the company offers fixed and mobile connectivity alongside a comprehensive range of digital solutions for both individuals and businesses. With significant investments in fiber optic infrastructure and the deployment of robust 5G network services across Spain, Brazil, Germany, and the UK, Telefonica understands that the most important connections are the human connections. By improving network reliability and performance, the company aims to bring people closer together.

To achieve this goal, Telefonica España has partnered with Microsoft Azure to harness big data analytics, AI, and automation. This collaboration focuses on three key areas: harnessing big data and advanced analytics, developing intelligent networks through AI and automation, and enhancing customer experience while improving operational efficiency.

It’s critical to manage and leverage this data effectively in order to maximize network quality. Our primary objective is to deliver the highest quality of services and the best customer experience.

Juan José Marfil, Director of Technology and Planning, Telefónica España

Harnessing big data and advanced analytics with Microsoft Azure

The modern mobile network generates vast amounts of data every day. Carlos Balaña, who works toward better optimization of the network at Telefónica España, notes, “Our mobile network generates huge amounts of data every day, which could be highly valuable if analyzed effectively.” However, monitoring and analyzing such a massive volume of data poses significant logistical challenges. “That’s when we started our cooperation with Microsoft. They understood our needs and came up with a solution that elevated the performance of our network,” he adds.

The solution involves the extraction, processing, storage, and analysis of data using the Microsoft Azure suite of tools. “That architecture includes, for example, Azure, Azure Data Explorer, and Azure Databricks. This allows us to store and access huge volumes of data and process it with advanced big data techniques,” says Balaña. Azure Data Explorer enables fast and highly scalable data exploration services, while Azure Databricks provides an analytics platform for big data and AI workloads. Additionally, Power BI empowers Telefonica España to design new dashboards and visualizations, facilitating better insights into network performance.

By effectively leveraging these tools, Telefonica España can focus on anomaly detection across the network, identifying and addressing issues before they impact customers. This proactive approach not only strengthens the network but also ensures that it serves customers in the best way possible.

Developing intelligent networks through AI and automation

Telefónica España partnership with Microsoft goes beyond data analytics; it's about transforming the network into an intelligent ecosystem.  Balaña explains, “Optimization is designed to equip our team with advanced tools to analyze and explore all available data within the mobile network, strengthening our capacity to travel through the network. Thanks to this project, we are able to maintain more insights about 5G and 4G technology.”

By incorporating AI and big data technologies, Telefónica España is developing more intelligent networks capable of self-optimization and adaptation. This intelligence allows for a reduction in time to market for new solutions, enabling the company to swiftly implement innovations that enhance network performance and customer satisfaction.

Juan José Marfil, Director of Technology and Planning at Telefónica España, emphasizes the strategic importance of this transformation: “It’s critical to manage and leverage this data effectively in order to maximize network quality. Our primary objective is to deliver the highest quality of services and the best customer experience. Meanwhile, adhering to strong security and privacy standards that safeguard both the network, and the data transmitted through it. Finally, we want to do this in a way that also optimizes our business processes.”

Enhancing customer experience and operational efficiency

The ultimate aim of Telefónica España efforts is to improve the quality of service for its customers while achieving substantial savings in operating costs. “Results have been very positive. They are performing as expected and have managed to significantly improve our internal processes. As a result, we can focus more on improving the quality of service we provide to our customers,” Balaña reports.

By automating data analysis and network optimization, Telefónica España can allocate resources more efficiently. The intelligent networks developed through this partnership not only enhance customer experience but also streamline business processes. Juan highlights, “The utilization of Azure big data and advanced analytics services enhances and differentiates our overall value proposition, both in terms of customer relations and business processes.”

Moreover, this collaboration fosters continuous innovation. “The project is live and constantly evolving. We have already deployed several use cases, and even when a project has specific requirements that are not yet deployed in the environment, we can adapt the solution architecture with the support of Microsoft. With every use case, we create value for our network and thus for our customers,” says Balaña.

Conclusion

Telefonica España collaboration with Microsoft Azure represents a significant step towards creating more intelligent, efficient, and customer-centric networks. By harnessing big data analytics, AI, and automation, Telefónica España is not only improving network performance but also fostering stronger human connections. As Marfil states, “This partnership between Telefónica and Microsoft facilitates the integration of Telefonica’s next-generation network with the Microsoft Azure platform, resulting in more innovative services in geos like Spain.”

Importantly, both companies are committed to data ethics and privacy.  Marfil stresses the importance of this: “And I would like to highlight that this alliance aligns with our shared commitment to data ethics and privacy, and both Microsoft and Telefónica are dedicated to the ethical and responsible use of customer data.”

Through these efforts, Telefónica España continues to make the world more humane by promoting inclusive digitalization. By focusing on intelligent networks, operational efficiency, and customer experience, Telefónica España demonstrates that the most important connections are indeed, as its mission asserts, the human connections. By making those connections more reliable, Telefónica ensures that bringing people together remains at the core of successful telecommunications.

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